Steel Caucus Voices Concerns of Potential Trade Status Change for Vietnam
Washington, DC – Congresswoman Marcy Kaptur joined 37 Bipartisan Members of the Congressional Steel Caucus, led by Chairman Rick Crawford (AR-01), and Vice Chairman Frank Mrvan (IN-01) in a lettersent to Secretary of Commerce Gina Raimondo, expressing concern about the department’s reconsideration of Vietnam’s non-market economy (NME) status in US antidumping proceedings.
As the letter points out, Vietnam remains a top-down, government-controlled economy. The country practices steel dumping by flooding the US with heavily subsidized steel in violation of international trade standards, which harms domestic production. Vietnam is also known to be a platform for Chinese steel to circumvent US trade remedy orders. This malicious behavior should not be rewarded by a beneficial change of status.
In October, the Department of Commerce announcedthat it would begin reviewing Vietnam’s NME status. This announcement came shortly after Vietnam filed an official request to be considered a market economy. Commerce has 270 days to complete the review, which should occur in mid-July.
“Steelworkers and our American Steel Industry in Northern Ohio, across the Midwest, and throughout our nation should not be negatively impacted by illegally dumped steel from Vietnam, or elsewhere,” said Congresswoman Marcy Kaptur (OH-09). “I will always stand with the men and women of the American steel industry. Their work and US made product is vital to maintaining our domestic supply chain.”
“Vietnam has been injuring the American steel industry for years through unfair trade practices. Our government has a duty to protect American businesses and workers, and the Department of Commerce must reject Vietnam’s request," said Congressman Rick Crawford (AR-01). "To grant Vietnam market economy status would be rewarding bad behavior and is a thumb in the eye to American steel."
“The livelihoods of steelworkers and their families are dependent upon the full and fair enforcement of our US trade laws, and we must do all we can to hold bad actors around the world accountable for unfair trade practices," said Congressman Frank Mrvan (IN-01). "As vice chairman of the Congressional Steel Caucus, I look forward to continuing to partner with all my colleagues to ensure that workers in steel-producing communities throughout our nation can compete on a level playing field.”
“The SMA applauds the Congressional Steel Caucus for highlighting the devastating effect that granting Vietnam market economy status would have on American workers and American steel production. America’s industrial might relies on fair trade," said Philip K. Bell, President of the Steel Manufacturers Association. "If countries such as Vietnam, which has turned into one of the most harmful steel traders in the world, are granted market economy status, that puts American jobs and livelihoods at risk. It also destroys secure domestic supply chains in favor of countries that only succeed through government intervention or serving as a key cog in China’s belt and road initiative. We stand with the bipartisan members of the Congressional Steel Caucus in calling for Vietnam not to be granted market economy status."
"As China continues to utilize Indo-Pacific markets to undercut American steel tariffs, STI/SPFA stands in strong support of the Congressional Steel Caucus' letter to Commerce Secretary Raimondo urging the reconsideration of Vietnam as a 'market economy,'" said Tim O'Toole, executive director of the Steel Tank Institute/Steel Plate Fabrication Association (STI/SPFA). "By legitimizing Vietnam's government-controlled economy that relies on aggressive subsidies to finance its steel marketplace, the Commerce Department would send a signal that developing countries can follow in Vietnam's footsteps by dumping steel products into the United States and subsequently preventing domestic steel manufacturers across the supply chain from competing on a level playing field. We appreciate Representative Mrvan and Representative Crawford's leadership on this issue and look forward to working with the Steel Caucus to continue pushing back against efforts to undercut American-made steel,” said Tim O'Toole, executive vice president of STI/SPFA.
The letter is also supported by the following groups: Committee on Pipe and Tube Imports (CPTI), Steel Manufacturers Association (SMA), American Iron and Steel Institute (AISI), United Steel Workers (USW), Coalition for a Prosperous America (CPA), Alliance for American Manufacturing (AAM), and the Steel Tank Institute/Steel Plate Fabricators Association (STI/SPFA).
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